Listing Creditors

[nohope]

My lawyer left several creditors (including a couple of judgments) off the schedule showing creditors. They also listed some of the debt more than once which inflated the total amount of debt I have. Lawyer said not to worry about it - trustee sorts it all - how does the trustee do that???

[justbroke]

I wouldn't say that the Trustee sorts it all out. I would make sure that all debt is listed, whether it is duplicated or not. This is because if your case is an asset case, only those items that you scheduled (listed) or the creditor had constructive knowledge of the filing in advance enough to file a claim in an asset case, would render those unlisted (un-scheduled) not discharged! Additionally, in many Districts, a no-asset case doesn't need to list all creditors. However, some Districts do require you to list all debt for it to actually be discharged. So it does vary.

If I knew that there were things missing or incorrect, I'd have the attorney make the changes before discharge. You will probably incur the $26 fee for filing an amendment and the attorney may charge you an hour's worth of time at the prevailing rates (based on your fee agreement). If you had previously provided your attorney with this information and they just "forgot" to put it on there, the attorney should not be charging you any fees since it was their fault.

In a Chapter 7, you don't need to worry about how much debt there is, as debt limits exist only in the Chapter 13 cases.

[tobee43]

please listen to jb......

we listed american express 5 times....why??? because they listed themselves on our credit report 5 times....(we were even asked by the trustee about that one...and i explained it since american express tried to be tricky and use our first names..on two....our second names one 2 and both our names on one!!!!) are they nuts or what???

there were numerous creditors NOT listed on the credit report and we listed everyone..their mother and their MOTHERS MOTHER....we left no stone unturned....

better to over name than under that's for certain...and try to remember every single "little" bill......as well as make certain you atty lists docket numbers on those judgments...there is a place right on the petition to list the...(jb most likely even knows the number of that question on the petition..).....

also make certain you have correct account number info and most importantly....since it's required that each creditor get "proper" notification...that you check all the mailing addresses and make certain they are correct....

best of luck...and remember ...you pd the atty....have the firm do what you asks of them.

best of luck!!!

[tcreegan]

Hi nohope,

If it were me, I would push my attorney to include every creditor you can find. But thats just b/c I'm a CYA kind of guy...

In theory pre-petition unsecured debt is discharged even if you forget to list them, your attorney makes an error, ordinary goof-ups. Unless you are an asset case w/ a big distribution, no one will care.

I wouldn't worry about the multiple listing at all.

Never heard of a trustee sorting it all out....but if you are a no asset case and there is no distribution, then no one needs to sort anything.

Good luck w/ your case!

Tom in Colo

[debee]

Sloppy, lazy attorney. That would drive me nuts. I wonder if he does that to all his clients.

Judd v. Wolfe: In the 3rd circuit (which includes NJ) it's not necessary to reopen a no-asset, no-bar-date case in order to add a forgotten creditor because the debt is either discharged or excepted from discharge based on section 523 and 727(b). So if the debts were of the kind that can be discharged and there is no fraud, etc., they will be discharged whether they appear on the schedules or not.

Still, I've read anecdotal stories about people having other credit problems down the line because the original creditor was not listed. Who wants the hassle if it can be avoided? If it were me, I would encourage Slackass, JD to get it sorted out while the ink is still wet.

[frogger]

Sloppy, lazy attorney.

Agreed. Your attorney needs to correct the filing at his expense. EVERYONE needs to be listed.

[nohope]

This is an asset case - I have (soon to be HAD) substantial equity in my house. Who ensures that creditors don't get paid twice/multiple times? AMEX had a judgment against me - it wasn't listed - it's on my credit report the lawyer "used". AMEX was listed as a creditor with 5 account numbers - I didn't/don't have 5 AMEX accounts. Other judgments were left off as were creditors. Amount of the debt was incorrect. A judgment from a local lawyer was listed as a judgment lien.

[justbroke]

If it's an asset case, then the Trustee will review the actual claims filed. It doesn't go by the Schedules, as to who gets paid in an asset case. That's why I meant that the Trustee doesn't sort out your Schedules. I would make sure you and your attorney have the correct items on the Schedules and that all parties that are creditors were notified! If not, and the Trustee sends out the Notice of Potential Distribution in an asset case, those un-noticed parties will be able to collect from you again, once the case is closed!

Let me repeat. In an asset case, it is extremely important to have all creditors not only scheduled, but listed on the Mailing Matrix and ensuring that they receive actual notice.

[nohope]

I'm confused. I have significant equity in my house. The schedules have amounts that I have no idea where they came from - many are inflated because it appears when a debt was listed more than once, they added the debt in more than once (e.g. added amount owed to original creditor and same amount owed to collection agency for the same debt). Why would this be done?

[frogger]

Just stop and chill for a minute..........

Being a Chapter 7 asset case means that you have assets to be distributed to the creditors. No big deal.

With that being said, your lawyer needs to list EVERYBODY, EVERYONE, AND EVERYTHING in your petition. If you were a no asset Chapter 7, it would not be as big of a deal, but since you are an asset case, it is important for everyone to have a chance to participate in the recovery of funds.

Your creditors will get notification of your bk, and they will be instructed to file a proof of claim in order to be eligible to receive any assets.

Your creditors will fill out the form and attach supporting documentation.

The trustee then follows the procedures as to who gets paid. It's really not a big deal.

[tobee43]

good point fogger...many have confused and think they will lose everything....i agree with you.

it will all workout nohope.